7 reasons veterans struggle with debt, and how to get relief
Debt is a widespread issue for Americans, but for veterans and military families, it’s often more than just a temporary setback — it can be a chronic, compounding problem tied directly to their service.
According to the Military Family Advisory Network (MFAN), the burden isn’t just financial. It’s also deeply emotional, affecting mental health, stability and long-term financial readiness.
Let’s take a closer look at why veterans face such unique financial challenges and, according to Accredited Debt Relief, what can be done to help.
The Debt Burden on Military Families
Military life comes with sacrifices that most civilians never have to consider. Long deployments, frequent relocations and gaps in income after service all contribute to a perfect storm of financial instability. MFAN’s 2021 Military Family Support Programming Survey highlights just how serious the situation is.
75.8% of military and veteran families have debt and they are…
Unable to build their savings: 51.2% have been unable to save in the last two years.
Unprepared for emergencies: 38.4% have less than $500 saved for emergencies.
Burdened by financial stress: 80.7% are experiencing financial stress.
These are not just statistics. They represent families who are constantly worried about their next bill, who may be putting off healthcare or who are forced to make impossible decisions between necessities.
Why Are Veterans in Debt?
Let's take a closer look at the seven common reasons veterans face unique financial challenges:
- Frequent Moving Expenses
- Difficulty Finding a New Job
- Job or Income Loss
- Medical Bills
- The Rising Cost of Living
- Missing Bills During Deployment
- Delayed or Insufficient Benefits
The Financial Pressures Behind Veteran Debt
Frequent Moving Expenses
Even with covered relocation, hidden incidental expenses (like temporary lodging, deposits, lost income and vehicle shipping) add up quickly when you move every 2-3 years. Dual rents or tough home sales during transitions can also strain finances.
Difficulty Finding a New Job
When veterans transition to civilian life, finding a job that truly fits their skills is tough. Often, military experience isn't recognized or there's no clear civilian equivalent. This can lead to long unemployment or underemployment, quickly creating financial strain.
Job or Income Loss
Spouses of military members are often forced to leave their jobs during relocations and veterans may face unexpected layoffs or contract work with inconsistent pay. Without a financial cushion, even a short gap in income can lead to credit card debt or personal loans.
Medical Bills
Even with VA healthcare, veterans may still face unaffordable medical costs. This is especially true if their conditions aren’t yet rated by the VA or if they need care outside of VA-approved facilities. Private health insurance can come with high premiums, copays and deductibles that stack up quickly.
The Rising Cost of Living
Rising inflation hits military and veteran families particularly hard. The cost of essentials, like groceries have increased 19.1% since 2022. For families already on tight budgets, price hikes deepen their financial challenges.
Missing Bills During Deployment
Deployments are chaotic. Even with careful planning, it’s easy to miss a due date—especially for service members without reliable internet access or who are focused on mission-critical tasks. Missed payments can snowball into collections, late fees and credit damage.
Delayed or Insufficient Benefits
While VA benefits are a lifeline for many, delays are common. According to the VA, the average processing time for disability claims is currently over 84 days. That’s more than three months that a veteran might go without the financial support they desperately need. Appeals can drag on even longer.
What Veterans Can Do to Get Back on Track
Veterans and their families are incredibly resilient — but financial challenges can feel overwhelming without the right tools. Sometimes, careful budgeting just isn’t enough. Fortunately, there are solutions for veterans to help reduce debt, restore stability and rebuild confidence.
Debt Consolidation Options
If you’re juggling multiple high-interest debts — like credit cards, personal loans, or medical bills — debt consolidation options can offer immediate relief. This solution combines your debts into one simplified monthly payment.
For many veterans, this approach is faster and more affordable than minimum payments or bankruptcy. It can free up cash flow, reduce stress and help you get out of debt faster than other debt relief methods.
Benefits of consolidation may include:
- Lower eligible monthly payments by 40% or more
- One manageable payment dateAvoiding bankruptcy
- Less emotional strain
- Get out of debt in 24 to 48 months
Veterans deserve financial options that respect their service and protect their future. Debt consolidation offers a clear, compassionate path forward.
Nonprofit Credit Counseling
Reputable organizations like the National Foundation for Credit Counseling (NFCC) provide personalized financial guidance. Their programs help veterans and military families review their full financial picture, create a budget and understand all their repayment options.
VA Financial Assistance Programs
The VA Debt Management Center offers solutions for veterans struggling with VA-related debts. These include extended payment plans, pauses on collections and in some cases, debt forgiveness based on hardship.
Military Relief Societies
Each military branch has nonprofit aid societies offering financial support in times of crisis. These include:
- Army Emergency Relief (AER)
- Navy-Marine Corps Relief Society (NMCRS)
- Air & Space Force Aid Society (AFAS)
- Coast Guard Mutual Assistance (CGMA)
These programs can provide grants, interest-free loans and emergency assistance to help with housing, utilities or unexpected expenses.
Debt Solutions for Veterans
Addressing veteran debt typically requires a combination of financial assessment and access to appropriate resources. Available options may include budgeting assistance, nonprofit credit counseling, hardship programs and debt consolidation options.
Many programs, like those offered by debt consolidation companies, provide free consultations with debt professionals, during which they’ll review your income, expenses and unsecured debt. These discussions generally outline estimated timelines, fees and potential outcomes, allowing veterans to evaluate whether a particular approach aligns with their financial circumstances and goals.
This story was produced by Accredited Debt Relief and reviewed and distributed by Stacker.
